ANALISYS OF DABUR RURAL MARKET AND ITS

STRATAGIES

By:

MBA- Marketing & Sales VIVEK UPADHAY

Introduction

Dabur India Ltd. is the fourth largest FMCG Company in India.

• Largest Herbal & Natural Portfolio• 4000 Distributors in India• Retail Reach 2,500,000• 5 Umbrella Brands• 350+ products• 4000 employees• 15 Manufacturing Plants

Dabur’s Business Structure

• Consumer Care Division (CCD) Dabur (Ayurvedic), Vatika - Premium hair care, Hajmola -

Tasty digestives, Real - Fruit juices & beverages, Fem –Fairness bleaches & skin care products

• Strategic positioning of Honey as food product, leading to market leadership (over 75%) in branded honey market.

• Dabur Chyawanprash the largest selling Ayurvedic medicine with over 65% market share.

• Hajmola tablets in command with 60% market share of digestive tablets category.

• Consumer Health Division (CHD) • Major categories in traditional formulations

include: - Asav Arishtas - Ras Rasayanas - Churnas - Medicated Oils

• International Business Division (IBD)

• spanning the Middle East, North & West Africa, EU and the

US with its brands Dabur & Vatika.

• Leveraging the 'Natural' preference among local consumers to increase share in personal care categories.

Rural Marketing

• Rural marketing is promotion of a company's products in the rural market buy using strategies which differs from that of urban market, the rural market is more price sensitive but it has preference for quality.

Why Rural market?

• The rural population is 72% of total Indian population

• Literacy level (25% before independence – more than 65% in 2001)

• MART, the specialist rural marketing and rural development consultancy has found that 53 per cent of FMCG sales lie in the rural areas.

• Of two million BSNL mobile connections, 50 per cent went to small towns and villages.

• The rural market is zooming ahead at around 25 per cent annually.

• "The rural market is growing faster than urban India now," says Venugopal Dhoot, chairman of the Rs 989 - crore (Rs billion) Videocon Appliances.

• "The urban market is a replacement and up gradation market today," adds Samsung's director, marketing, Ravinder Zutshi.

RURAL MARKETING STRATEGIES BY DABUR

• Promotion Strategy • For attracting more customers Dabur using

following Promotional tools in rural market: • TV Commercial • Radio • News Paper • POP display • Wall panting • Contest in Melas or Haats • Video vans • Sales Promotion

• Regional branding strategy • Dabur is trying to capture market by launching

products with a regional twist, e.g. Sivappu Pal Podi.

• Distribution Strategy – Dealer – Whole seller – Agents – Retailer – Kirana store

• Dabur uses Astra to boost rural sales• ASTRA- Advanced Sales Training for Retail

Ascendance• Shopkeepers selling Dabur India’s consumer

product would now learn marketing through role plays

• Astra training consultancy module in five languages: Bengali, Tamil, Telegu, Malayam and Kannada.

Few more trends• IOC, Dabur to tie up for rural marketing– IOC’s 1,000 retail outlets across the country will stock a

range of Dabur’s Ayurvedic products.• Dabur goes rural with campaign for immunity– 10 lakh-plus students were educated about the need

for immunity in 1,000 schools across the country.• ‘Dabur Gulabari Miss Fresh Face of UP 2009’– The hunt will cover nine major cities viz Kanpur,

Lucknow, Meerut, Gorakhpur, Ghaziabad, Agra, Noida, Allahabad and Varanasi.

SWOTStrength• Market leader• Innovation• Lower costs• Extensive customer base • 125 year trust

Weakness• Not reducing costs • lack of patents• Limited customer base • limited product line

Opportunity• Export opportunities • Governmental support• Changes in technology• Increase in awareness

Threat•Consumer lifestyle changes •Increased competition •Price wars•Rising costs

4 A’s for Dabur

The Acceptability for Dabur is very high in rural India

Dabur launches its product in small volume packs for rural

With the Retail Reach 2,500,000 outlets Dabur meet the rural India. Sales promotional

activities raise the awareness level .